2024-07-26 15:26:13
Although the law has not yet come into force, this project already makes Chile the third South American country to have local regulations.
The gambling industry in Chile dates back to 1849when the first slot machine and roulette games became popular in the country. Forty years later, the first casino was created and, in 2005, with the approval of Law 19,995, online operators exploded under the well-known iGaming industry.
With the proliferation of these platforms, some incidents have emerged in which operators and the Chilean justice system have been the protagonists. Among them, the bill itself stands out, which has not been free of controversy, and which is joined by a group of legal actions and events that have kept industry operators and the justice system busy since the beginning of this year.
iGaming industry operators and the bill
The bill has been in the works since 2022, becoming a reality this year, when the Chamber of Deputies finally approved it in January with 80 votes in favor, 36 against and 18 abstentions. Although it has not yet entered into force, this project already makes Chile the third South American country to have local regulations. However, the law has given rise to all kinds of opinions due to several controversial factors.
One of them is the taxes that Chilean online gaming operators will have to pay, which, although it is a tax collection, They are currently considered one of the highest taxes collected in all of Latin America. In this sense, the different online platforms must prove the same income taxes and VAT as their physical counterparts, in addition to paying a corrective tax of 20% on gross income; a 1% tax for the Responsible Gaming program; and a 2% levy on gross income each year.
Added to this is the so-called cooling off, a measure that will prohibit the operation of operators that are currently active for one year. This means that current online gambling sites, once the bill comes into force, will have to cease operations for the established time, and then apply for a local license from the Superintendency of Casinos, Betting and Games of Chance.
Added to this unrewarding measure is the refusal to offer sponsorships. In this case, several platforms, especially online casinos, have historically benefited from this type of collaboration, which is a traditional form of advertising. Not in vain, the best gaming sites in the industry in Chile, reviewed by casino.cl experts, have attracted thousands of users not only through their high-quality games and experiences, but also through sponsorships of sports clubs and other events.
The project, although it will continue to be subject to evaluation, has not avoided multiple comments for or against. In this regard, the Association of Online Betting Platforms, although it considered this law, highlighted the negative results of its most controversial regulations. Added to this are recent legal events between some operators in the iGaming industry and the Chilean justice system, which intensifies the tension between the two.
The case of sports clubs
Recently, three Chilean sports clubs, O’Higgins, Palestino and Deportes Iquique, demanded that the National Professional Football Association terminate its contracts with companies that collect information for betting systems. In the letter, sent to the ANFP president, they criticised his links with specific companies that, they claim, provide detailed information about matches for the use of operators in the iGaming industry, specifically in betting.
One of the main reasons for such demands is that, according to the plaintiffs, this leads to negative influences on younger players and on matches, which they describe as dangerous and unacceptable. They also point out that it is against sporting ethics and may lead to the manipulation of results. They therefore suggest holding talks to prevent such practices between youth football coaches and players, as well as advertising campaigns.
Legal ruling against the operator Enjoy
In early July, the Supreme Court denied Enjoy’s legal actions to change the decision of the Superintendency of Gaming Casinos. The company was trying to settle a conflict that dates back five years, specifically in 2018, when it was granted an activity permit at the Puerto Varas Casino, under the condition of building a comprehensive casino project within the legally established time of two years. Although he had the possibility of extending it for an additional year, his term expired in 2021 and the revocation process for breaching the agreement immediately began.
At that time, the conflict escalated to a large scale when Enjoy claimed not to be guilty of non-compliance, since the Municipal Works Department did not grant the building permit. According to the latter, the project did not comply with the construction standards determined by the Regulatory Plan. Despite all the appeals filed to reverse the SCJ’s decision, the court dismissed the last of them and currently the Puerto Varas Casino is operated by Dreams as a municipal casino. Such a failure represents a new economic problem for Enjoy, which could now face a new lawsuit for accumulated debts.